Hero FinCorp, a well-known company that provides loans to people and small businesses, is preparing to go public. This means they want to sell shares of the company to the public for the first time, a process called an Initial Public Offering (IPO). Hero FinCorp aims to raise a total of ₹3,668 crore through this IPO.
Hero FinCorp, a part of the famous two-wheeler maker Hero MotoCorp, is looking to use the IPO to gather funds to boost its operations. The company has submitted a document called a Draft Red Herring Prospectus (DRHP) to SEBI (Securities and Exchange Board of India), which is the government body that oversees the stock market. The DRHP contains important information about the company and its plans.
According to the DRHP, Hero FinCorp plans to raise ₹3,668 crore through the IPO. Out of this total amount:
- ₹2,100 crore will come from issuing new shares. This money will go directly to the company and will be used to grow its business and lend more money to people and businesses.
- ₹1,568 crore will come from the sale of shares by existing investors. These are investors who already own shares in the company and want to sell some of them to the public.
Next Steps
Hero FinCorp is waiting for SEBI’s approval for their IPO. Once they get the green light, they can start selling shares to the public. Investors interested in buying shares will have the chance to become part-owners of the company.
Hero FinCorp is optimistic about the IPO and believes it will help them achieve their growth objectives and provide more financial products to their customers.
Hero FinCorp’s IPO is a significant move for the company, aiming to raise a substantial amount of money to expand its business and improve its financial position. The IPO will include both new shares and shares from existing investors, providing a unique opportunity for the public to invest in the company.